Latest news with #iSharesRussell1000GrowthETF
Yahoo
23-06-2025
- Business
- Yahoo
IWF Is a Great Choice for Most, But I Like VUG ETF Better
IWF and VUG hold top growth stocks. VUG has a much lower ETF expense ratio. VUG has also produced higher returns over its history than IWF. 10 stocks we like better than Vanguard Index Funds - Vanguard Growth ETF › The iShares Russell 1000 Growth ETF (NYSEMKT: IWF) is one of the largest and most popular exchange-traded funds (ETFs) focused on companies growing their earnings at above-average rates. It enables investors to target growth stocks, which can enhance their investment returns. While I think the iShares Russell 1000 Growth ETF is great for most investors seeking to tap into the outsize return potential of growth stocks, I like the Vanguard Growth ETF (NYSEMKT: VUG) better. Here's why. The iShares Russell 1000 Growth ETF and the Vanguard Growth ETF focus on holding companies growing their earnings faster than the market's average. For example, VUG's holdings have grown their earnings at a 27.5% annual rate over the past five years. While both ETFs track growth stocks, there's a subtle difference. The Vanguard Growth ETF tracks an index, the CRSP US Large Cap Growth Index, that holds only large-cap growth stocks, while the iShares Russell 1000 Growth ETF tracks an index, the Russell 1000 Growth Index, that consists of large- and mid-cap stocks. As a result, IWF has more holdings than VUG (392 to 166). However, because both funds have a market weighting, their top holdings are identical with very similar weightings: IWF VUG Microsoft (11.7%) Microsoft (11.3%) Nvidia (11.1%) Nvidia (10.3%) Apple (9.5%) Apple (10.1%) Amazon (6.6%) Amazon (6.3%) Meta Platforms (4.6%) Meta Platforms (4.4%) Broadcom (3.8%) Broadcom (4%) Alphabet Class A (3.4%) Tesla (3.3%) Tesla (3.1%) Alphabet Class A (3.3%) Alphabet Class C (2.8%) Alphabet Class C (2.6%) Eli Lilly (2.2%) Eli Lilly (2.2%) Data sources: BlackRock and The slight difference in allocation is primarily due to the dates of the last available holdings update for these funds. Given that their top 10 holdings -- which comprise nearly 60% of their assets -- are roughly mirror images, you could easily choose either fund for similar exposure to the top growth stocks. While the iShares Russell 1000 Growth ETF and Vanguard Growth ETF have very similar holdings, there are two notable differences. The first one is cost. IWF's ETF expense ratio is 0.19%, while VUG's is much lower at 0.04%. That's due to Vanguard's emphasis on keeping costs low for investors so that they can keep more of the returns generated by its funds. To put the cost difference into perspective, for every $10,000 invested, you'd pay the IWF fund manager $19 annually while only paying $4 per year for VUG. That higher cost will eat into IWF's returns over the long term. Speaking of returns, that's another area where VUG stands out compared to IWF: ETF 1-Year 3-Year 5-Year 10-Year Since Inception IWF 7.6% 9.9% 19.9% 14.9% 7.4% VUG 18.2% 19.9% 17.1% 15.3% 11.5% Data sources: BlackRock and Vanguard. NOTE: IWF fund inception is 5/22/00, while VUG's is 1/26/04. As that table shows, VUG has delivered much higher returns than IWF in every period other than the past five years. That's because larger-cap growth stocks have generally produced higher returns than mid-cap growth stocks in more recent years. That drag and its higher expense ratio have weighed on IWF's returns. The iShares Russell 1000 Growth ETF is a great ETF to buy to increase your portfolio's allocation to faster-growing companies. However, I think the Vanguard Growth ETF is a better option. It provides investors with exposure to most of the same holdings at a lower cost. Its strategy has enabled it to produce higher returns for its investors over the years. That's why I'd pick VUG over IWF to add more growth to your portfolio. Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Index Funds - Vanguard Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Matt DiLallo has positions in Alphabet, Amazon, Apple, Broadcom, Meta Platforms, and Tesla and has the following options: short August 2025 $250 calls on Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. IWF Is a Great Choice for Most, But I Like VUG ETF Better was originally published by The Motley Fool
Yahoo
01-04-2025
- Business
- Yahoo
FXU Assets Surge 29% With $426 Million Inflow
The First Trust Utilities AlphaDEX Fund (FXU) pulled in $425.7 million Monday, increasing its assets by 29.4% to $1.4 billion, according to daily fund flows data. The Vanguard Total Stock Market ETF (VTI) attracted $601.7 million, while the iShares 20+ Year Treasury Bond ETF (TLT) gained $522.7 million as traders positioned for Wednesday's tariff announcements. The iShares Russell 1000 Growth ETF (IWF) collected $468.7 million amid Monday's market rebound. The SPDR S&P 500 ETF Trust (SPY) experienced outflows of $3 billion despite the S&P 500 adding 0.6% on Monday. The ProShares Ultra QQQ (QLD) saw outflows of $578 million, a 9.8% reduction in assets, while the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) lost $503.6 million. U.S. fixed-income ETFs led overall with $1.6 billion of inflows, while international fixed-income products added $569.8 million as investors sought safety. The ETF industry collected a total of $2.5 billion in net inflows as markets attempted to recover from recent volatility. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change VTI Vanguard Total Stock Market ETF 601.72 439,644.66 0.14% TLT iShares 20+ Year Treasury Bond ETF 522.69 52,323.42 1.00% IWF iShares Russell 1000 Growth ETF 468.74 96,164.55 0.49% FXU First Trust Utilities AlphaDEX Fund 425.73 1,447.49 29.41% SPLG SPDR Portfolio S&P 500 ETF 349.75 58,431.26 0.60% IVV iShares Core S&P 500 ETF 335.08 576,614.54 0.06% VB Vanguard Small-Cap ETF 332.55 59,149.01 0.56% VXF Vanguard Extended Market ETF 330.33 20,186.06 1.64% VXUS Vanguard Total International Stock ETF 320.74 83,490.30 0.38% VUG Vanguard Growth ETF 277.84 144,507.07 0.19% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change SPY SPDR S&P 500 ETF Trust -3,001.80 572,777.86 -0.52% QLD ProShares Ultra QQQ -577.99 5,877.76 -9.83% HYG iShares iBoxx $ High Yield Corporate Bond ETF -503.59 15,107.79 -3.33% SPXL Direxion Daily S&P 500 Bull 3x Shares -289.79 3,967.36 -7.30% QQQ Invesco QQQ Trust Series I -257.95 297,254.74 -0.09% FXD First Trust Consumer Discretionary AlphaDEX Fund -253.91 499.17 -50.87% IWM iShares Russell 2000 ETF -230.66 64,213.74 -0.36% DFAC Dimensional U.S. Core Equity 2 ETF -173.91 31,182.09 -0.56% SSO ProShares Ultra S&P 500 -167.73 4,540.87 -3.69% DIA SPDR Dow Jones Industrial Average ETF Trust -166.28 36,537.60 -0.46% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives 22.71 9,791.55 0.23% Asset Allocation 54.69 23,321.10 0.23% Commodities ETFs 370.47 198,244.99 0.19% Currency -118.23 105,443.51 -0.11% International Equity 503.21 1,644,080.83 0.03% International Fixed Income 569.83 281,303.45 0.20% Inverse 218.09 14,090.00 1.55% Leveraged -954.97 100,241.79 -0.95% US Equity 211.56 6,394,127.60 0.00% US Fixed Income 1,573.10 1,635,413.75 0.10% Total: 2,450.46 10,406,058.56 0.02% Disclaimer: All data as of 6 a.m. ET the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved Sign in to access your portfolio
Yahoo
22-03-2025
- Business
- Yahoo
3 Growth ETFs to Buy With $1,000 and Hold Forever
Are you looking for investment growth without all the monitoring and activity that growth portfolios usually require? Well, good news! It's possible. You just need to be willing to let someone else handle the stock selection and portfolio-maintenance duties. I'm talking about exchange-traded funds (or ETFs), of course, which are managed on your behalf by companies that understand the upside of a passive approach to stock picking. Here's a closer look at three different growth ETFs you can buy and hold forever. If you have $1,000 available to invest that isn't needed to pay bills, bolster an emergency fund, or reduce short-term debt, you might want to consider putting it toward shares in one of these ETFs. There are several obvious first choices in your hunt for a growth-oriented exchange-traded fund, like the Vanguard Growth ETF (NYSEMKT: VUG) or the iShares Russell 1000 Growth ETF (NYSEMKT: IWF). The same basic design flaw is evident in both of these ETFs though, along with most others like them. That is, these cap-weighted funds are still very top-heavy. Nearly one-third of these two ETFs' total values consist solely of their stakes in Apple, Microsoft, and Nvidia. Adding Amazon and Facebook parent Meta Platforms to the mix pumps their top five stocks' combined values up to nearly 50% of each fund's total assets. The iShares S&P 500 Growth ETF (NYSEMKT: IVW) doesn't quite have this same problem. While it's hardly a so-called "equal weight" fund (funds that hold equal-sized stakes in every stock they own regardless of the underlying companies' market capitalizations), it's nowhere near as top-heavy as other similar ETFs. The iShares fund's top five holdings only account for roughly one-third of its total assets, while its top three only make up one-fourth of this ETF's total value. Moreover, because it's based on the S&P 500 Growth Index, which considers momentum as one of its inclusion factors, its allocation looks different from those of more popular funds, too. Nvidia is actually this particular ETF's biggest position right now, followed by Microsoft, then Apple, then Meta, and Amazon. That's in measurably stark contrast with each of these companies' current market caps. It may not always matter. More often than not when one of these stocks is rising or falling, the rest of them are rising or falling with it. To the extent it does matter though, the iShares S&P 500 Growth ETF is a better-balanced fund than comparable alternatives, and given enough time, every little nuance matters. The longer time marches on, in fact, the more these little things matter. Odds are good that nearly every growth stock you own (or have at least considered buying) is a large-cap name. And that's fine. These are also the tickers you're likely hearing the most about. This approach, however, excludes a wide swath of stocks with higher odds of better growth. That's mid-cap stocks, and especially mid-cap growth stocks. There are several such exchange-traded funds to choose from, including the iShares S&P Mid-Cap 400 Growth ETF (NYSEMKT: IJK), which includes all the growth names found in Standard & Poor's MidCap 400 Index. These of course are the stocks that aren't quite big enough to qualify as an S&P 500 constituent, but are bigger than the small caps that make up the S&P 600 Small Cap index. These companies are often in their high-growth phase following their wobbly start-up period but before their sheer size makes it difficult to steer the organization. That's how and why the S&P 400 index -- and the S&P 400 Growth index in particular -- boasts a long track record of outperforming the S&P 500. These outfits are in their sweet spot for growth. Given the choice between owning the aforementioned iShares S&P Mid-Cap 400 Growth ETF and the Vanguard Mid-Cap Growth ETF (NYSEMKT: VOT) though, you're arguably at least a bit better off with the latter. See, the iShares mid-cap fund is limited to stocks within the S&P 400, but those 400 stocks aren't the market's only mid-cap names. They're hand-picked by Standard & Poor's for inclusion in the index. The Vanguard Mid-Cap Growth ETF, on the other hand, is built to reflect the holdings and performance of the CRSP (Center for Research in Security Prices) US Mid-Cap Growth Index, which consists of fewer stocks, but also arguably offers better sector-based balance and a higher overall quality of holdings. Names found within the Vanguard Mid-Cap Growth ETF that aren't held by the iShares S&P Mid-Cap 400 Growth ETF include Constellation Energy and Palantir Technologies. The former has been a strangely productive utility ticker since 2022, and the latter has been one of the market's best-performing artificial intelligence stocks since 2023. Long-term holders of the Vanguard fund may not always be so lucky. Given the limitations of what's allowed to be in the S&P 400 Mid Cap Growth index though, Vanguard's option may be the better bet more often than not. Finally, add the Technology Select Sector SPDR Fund (NYSEMKT: XLK) to your list of exchange-traded funds you can buy and hold forever if you've got $1,000 you can commit toward reaching a growth goal. You'll notice it's the only sector-based fund to earn a spot on this list. There's a reason. That is, while every sector's got its risk-adjusted upside, tech companies have historically offered investors the greatest potential for growth. The bulk of the world's most meaningful and most lucrative sociocultural advancements like personal computers, mobile phones, and artificial intelligence have all ultimately been rooted in technology. That's just the nature of the business. And that's not likely to change anytime soon. There's one not-so-small detail to consider if you're planning on stepping into this particular exchange-traded fund. It's not especially well-balanced. Like the aforementioned Vanguard Growth ETF and iShares Russell 1000 Growth ETF, this one's pretty top-heavy. Apple, Nvidia, and Microsoft collectively make up 40% of this fund's assets. Adding its positions in Broadcom and Salesforce makes its top five holdings worth nearly half of the ETF's total value. That's not a level of diversification most people would be happy with if they were picking individual stocks for their portfolio. This is one of those cases, however, where investors are just going to have to hold their nose and dive in, trusting that the premise makes long-term sense even if shuffles in the market's leading technology names are going to create above-average short-term volatility. Again, you're not looking for certain individual stocks. You're looking to hold a long-term stake in an entire world-changing sector. That requires a bigger-picture mindset with slightly different expectations. It also helps if the Technology Select Sector SPDR Fund isn't the only ETF you own. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $304,759!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,808!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $517,445!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 18, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, Salesforce, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard Index Funds-Vanguard Mid-Cap Growth ETF. The Motley Fool recommends Broadcom and Constellation Energy and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 3 Growth ETFs to Buy With $1,000 and Hold Forever was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
26-01-2025
- Business
- Yahoo
1 Unstoppable ETF That Could Turn $350 per Month Into $1 Million
Investing in the stock market today can be a bit concerning, given the S&P 500's elevated levels and many stocks trading at high valuations. The broad index is coming off a second straight year of gains in excess of 20%, leading some analysts to believe that a slowdown may be overdue for the market. One way to reduce your risk is to periodically invest in stocks. Putting money every month into a diverse exchange-traded fund (ETF) can be an excellent way to ensure you aren't worried about timing the market while also putting yourself in a great position to grow your portfolio's balance over the long term. A top ETF you can invest in that has the potential to turn a $350 per month investment into $1 million over the long term is the iShares Russell 1000 Growth ETF (NYSEMKT: IWF). Here's a closer look at the fund and why it may be a no-brainer option for long-term investors. What's attractive about the iShares Russell 1000 Growth ETF is that it focuses on large and mid-cap stocks, which are likely to grow at faster rates than the market. It gives investors exposure to many of the best growth stocks available. Historically, this has been a solid, market-beating investment to hang on to. While the tech sector is the largest sector in the fund's portfolio, accounting for just under 48% of the ETF's holdings, consumer discretionary stocks also make up 16%, followed by communication stocks at 14%, and both financials and healthcare stocks each account for around 7%. There are other, smaller sectors as well, which is why the fund can make for a good and diverse investment to hang on to. Its largest holding, Apple, represents 11% of the total portfolio. In total, there are around 400 stocks in the ETF. Another feature of the ETF that makes it suitable for the long haul is that it charges an expense ratio of just 0.19%. That's a modest rate, which will ensure a big chunk of the gains you accumulate won't go to cover fees. If you're investing $350 each month into this ETF, it can potentially turn into at least $1 million over the very long haul. Assuming you invest this amount regularly, here's how the value of your holdings may look over the long haul, assuming a 9% annual growth rate. Portfolio balance assuming a $350/month investment and a 9% annual return Year Investment Value 20 $233,760 25 $392,393 30 $640,760 35 $1,029,625 Chart by author. You can see the significant effect compounding can have on your portfolio's balance, particularly as it becomes larger. While it may take 20 years for your holdings to reach a value of more than $233,000, between the years of 25 and 35, your investment value could grow by over $637,000. By making investing part of your regular monthly routine, you can simplify the process, which can increase the likelihood that you stick to it. Without having to analyze stocks each month and just putting money into the Russell 1000 Growth ETF, you can ensure you're getting exposure to top growth stocks and investing your money in a way that gives you plenty of diversification and keeps your risk low over the long term. While it can take a long time for a $350/month investment to grow to $1 million, achieving higher annual returns or investing more (perhaps a lump sum) can lead to larger returns. But by investing as much as you can, you'll be putting yourself on a path to creating a much brighter financial future. Before you buy stock in iShares Trust - iShares Russell 1000 Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and iShares Trust - iShares Russell 1000 Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,051!* Now, it's worth noting Stock Advisor's total average return is 937% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list. Learn more » *Stock Advisor returns as of January 21, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy. 1 Unstoppable ETF That Could Turn $350 per Month Into $1 Million was originally published by The Motley Fool Sign in to access your portfolio
